The answer to this question depends on the situation that you are in and the reason for refinancing. Depending on these situations and reasons, refinancing can be good or bad. There are many reasons why people refinance, but all of them need to be made with all the information needed to make an informed decision.  I believe that 2007 will be another year where many people will be refinancing again, so it is important for those of us in the Mortgage Industry to be prepared to answer all of their questions, and assist them with the situation that they are in.  So what are some of the refinancing situations that we might be facing in 2007.

One reason for refinancing could be to get a lower interest rates.  This is not a reason that I have run into much this in 2006, but I have come across it.  There are still people out there that have high interest loans, who did not refinance in the last 2 – 4 years, and are just now realizing that they need to do this before the rates start to go up again.  Also people with Subprime Loans that no longer have a prepayment penalty will be refinancing, as will Borrowers who have Pay Option ARM, or Negative Amortization Loans.  In most cases these rates are higher than the present rate, or will be higher very soon, and those are excellent reasons to refinance.  If a Borrower is in one of these situations, they should talk to a knowledgeable Loan Officer who can provide them with the information needed to make the proper decision.

Some will refinance to consolidate their debt.  Credit card debt in some households has is pretty high, and many of these credit cards are carrying extremely high interest rates.  By refinancing the Borrower can lower their monthly payment substantially in many instances.  They can then apply the difference in their monthly payment toward principle and get rid of the debt quicker.  But most Borrowers refinancing for this reason do not apply the difference to their monthly payment, and many times end up running the debt back up on the credit cards again.  A better approach to this might be to take advantage of the credit card offers for 0% on money transferred to them, and not use the card for new purchases.  But even here the Borrower needs to weight the information on both approaches carefully in order to make the proper decision.

Some will refinance to make improvements to their homes.  Siding, windows, roofs, kitchens, and additions to the house are all things that can be very expensive, and personal loans can have a much higher interest rate than refinancing.  Most Borrowers that I have refinanced for these reasons, are usually refinancing in order to do several of these things and not just one.  There are many other home improvements that people make, but each and everyone should be weight against the cost of borrowing the money, and the length of time that they plan to remain in the house.

Some Borrowers will want to refinance to get rid of their PMI.  If this is the only reason, and they do not need to take money out of their equity to make improvements on the house, consolidate bills, or lower the rate, I would not recommend it.  It would be less expensive to just order a new appraisal, and if they have 80% to 78% equity in the house depending on the loan, the Mortgage Company or Bank will drop the PMI without the Borrower having to incur the closing cost of a refinance.  The only cost involved with this is the cost of a new appraisal done by an Appraiser that is approved by the Mortgage Company or Bank.  Again, even in this situation the Borrower should discuss this with a knowledgeable Loan Officer to make sure that they are making an informed decision and are aware of all the costs.

Refinancing your home, just like buying a home, should be done when you need to and are ready to do it.  If it makes sense, and you have gotten all the information needed to make a knowledgeable decision, then do it.  Waiting for the interests rates to drop further is not a good reason not to refinance.  You will never know when the rate is at its lowest point until after it happens, so be happy with just knowing that you have a good rate, and that you refinanced for the right reasons.

In all cases only refinance after you have talked to a knowledgeable Loan Officer who can provide you with the information that you will need in order to decide if refinancing is the proper thing to do or not.  I would not recommend the internet as a source for this, you need to talk to someone that will be there every time you call.  Someone that will be there when you have additional questions.  Someone that you can trust will help you make the right decision based on your needs and not their income.  Choosing a Lender just because they appear to have the lowest interest rate, could prove to be a very costly decision in the end.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

It will not be long before we get more Economic Reports for 2007, and especially on what the interest rates and housing costs will be for the upcoming year.  I say prediction because that is what they are, and like most predictions they can be wrong.  They are only someone’s guess based on the economic data they have available right now.  This data changes constantly, and depending on what happens, these economic indicators can change with a blink of an eye.  Are these predictions good educated guesses? Yes they are, but lets just take a quick look at what was predicted were for 2006.

As early as June of 2005 I was getting reports stating that the mortgages rates on a 30 year fixed mortgage would be 7% by January of 2006.  This did not happen, in fact my 30 year fixed rate in January of 2006 was 6.125% with no points.  The rate did finally hit 7% around June/July of 2006, but then start to come back down again, and today my rate on a 30 year fixed mortgage is 6.25%.  This is almost the same rate a year later, and they have been holding at this level for about a month now.  The predictions for 2007 will probably be much the same as they were for 2006.  The safe bet would be to say that rates are going to go up, but who knows, they could continue to go down as they have been the last several months.  If the financial gurus’ predictions could be taken as fact, there income would have several more zeros after it.

So what does this all mean?  What it means is that no matter how complete the economic model is for making these predictions, they will always be just that predictions, and predictions can be wrong a good percentage of the time.  All it takes is for a couple of unexpected things to occur in the financial world and predictions start to change.  What we need to do is to treat these predictions for exactly what they are, guesses and not fact.  Unfortunately all too often consumers do look at them as fact, and hold off doing what they really want to do.

This is why when I am talking to a Borrower, and they ask me should they buy know or wait, my answer is always buy now.  The best time to buy is always now, because as you can see we really don’t know what the economic conditions are going to be tomorrow.  All of the economic data in the world can do is to predict a trend, which could change in a blink of an eye with new data that is being generated every second.  So why wait and take a chance on interest rates being higher, and houses costing more.  If you can afford it today, then it is today that you should purchase.  If you find a house that you want to purchase, at a price that you can afford, then don’t wait, purchase it now.  Unless you are buying a house as a short term investment, then it does not matter if the house prices drop, because one thing that we do know with a high degree of certainty is that over the long term the value will go up.  In the long term Real Estate is one of the best investments that you can make. 

So if I have a Borrower who is ready to buy today, then it is today that I am going to advise them to buy. Today is the only day that we truly know what the rate and house prices are, tomorrow it could be much different.  So homebuyers whether it is your first home, or your third home, base your decisions on facts, not guesses that could be completely wrong tomorrow.  Base your decision on what the facts are today.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Things that we experience for the “First” time tend to be everlasting memories.  The first birthday that we are able to remember, first day of school, first best friend, first fight, first date, first kiss, first car, first accident, first speeding ticket, first house, birth of your first child, well I think you get the picture.  But there is one “First” that I did not mention that I will also never forget, and that is my first loan.

I remember that right after I became a Loan Officer, and before I came out of training, a friend of mine approached me and told me that once I was out of training that he wanted to refinance his house.  I asked him if he was planning to do some additional work to the house, consolidate some bills, or was he just simply looking to lower his interest rate?  He told me NO to all of these questions. 

So my next question was why do you want to refinance?  His response was one that I will never forget.  He stated that we had been friends since he was a teenager, I watched him grow up, and was there for his father when he needed someone to encourage him.  But these were not the only reasons, he wanted to be my “First” loan.  I did not know what to say except thank you.

The whole time I was going through training, I looked forward to doing the loan, and wanted to do the very best job that I could at putting it together.  Luckily for me it was not only my “First” loan, but it was probably the smoothest loan I have ever done.  It was a great start to a career that I truly have enjoyed doing each and everyday since then.

I have done many more loans since this then, but there is none that I remember more clearly, or that was more satisfying then this Loan.  I am sure that I am not the only one on ActiveRain that has a memory such as this, and who also vividly remembers their first loan, or the first house that you sold or listed.  We also have several Stagers and Appraisers on ActiceRain who probably still remember the first house that you staged or appraised.  I hope that you take the time to share that experience with us as part of this Post or in one of your own.  I look forward to reading them, and please let me know if you post one.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

The Connecticut Housing Finance Authority The (CHFA) is Connecticut’s Premier Mortgage Loan Program for “First Time Homebuyers”.  There have been a few Posts written here on ActiveRain, that have provided some information about different components of the CHFA Loan Program. So I thought it might be beneficial for “First Time Homebuyers” if a Post was written covering all of the features that make up the CHFA Loan Program.  Even though CHFA is a Loan Program specific to Connecticut, it is important for “First Time Homebuyers” who maybe planning to relocate to Connecticut to also have information about it.  Therefore this Post will be posted in the “Mortgage, First Time Home Buyer, New England, Connecticut, and Realtor Groups”.

CHFA is a Quasi Government Agency that provides a 30-year, fixed rate Loan Program, with an interest rate that is below comparable market rates.  For example this week the CHFA rate is 5.250 % (APR range 5.350 - 5.750 %) with up to One Point (1% Origination Fee) payable to Lender.  The Conventional Mortgage rates this week have been fluctuating between 6.125% and 6.375%, so as you can see the CHFA rate is far below the Conventional Rate.  CHFA rates are posted every Thursday, and are fixed until the following Thursday.  These Mortgages are originated and serviced by over 80 participating lenders (banks and mortgage companies) statewide in Connecticut.

Eligible Borrowers -  CHFA Mortgages are available to homebuyers who have not had an ownership interest in a home for the previous 3 years.  Prior homeowners may qualify for a CHFA mortgage if the home they purchase is within an area that is designated as a “Targeted Area”.  These homebuyers must also be below "Income Limits" that are established by “Household Size” and these “Income Limits” vary by town.  There are also “Sales Price Limits", which also vary by town.

Eligible Properties -  CHFA Mortgage may be used to purchase an existing one- to four-family home, mobile homes, a newly constructed single family home, or a newly constructed two-family home in a targeted area.  They can also be used to purchase condominiums that are on the CHFA eligible condominium list.  All properties must be owner occupied, and CHFA loans are not available for investment properties.

Downpayment and Closing Costs Assistance (DAP) – CHFA requires a 3% downpayment on their loans.  If a qualified borrower does not have enough funds for the downpayment and or closing costs, CHFA will let them borrow it on a second loan know as a “DAP Loan” at the same interest rate as the first loan.  CHFA allows a borrower applying for a DAP Loan to keep up to $5,000 of their own money before CHFA requires them to use their funds to satisfy the 3% downpayment and or closing cost.  The minimum DAP Loan amount is $3,000.  Qualifying Homebuyers who apply for a “DAP Loan” need to attend an approved CHFA “Homebuyer Counseling Class”.  These classes are free, and upon completion of the class a “Course Completion Certificate” which needs to be submitted with a DAP Loan, will be given to the homebuyer by the class Counselor.  If a homebuyer already has a sales contract on a house, then they only need to attend a 3 hour class, but if they do not have a sales contract on a house and want to get the classes out of the way, they need to do 8 hours of class time.

PMI/MI - CHFA Mortgages are usually FHA insured, so the Mortgage Insurance Rate (MI) is much less than the Private Mortgage Insurance Rate (PMI) for a loan with the same downpayment.  Because CHFA Mortgages are FHA insured they also are subject to the FHA Up Front Mortgage Insurance Premium (UFMIP) of 1.5%.

Veterans Mortgage Assistance Program (CHFA/VA) -  CHFA Mortgages are available to Veterans and can be insured by the VA.  This means that besides qualifying for the below market CHFA rate, the CHFA/VA Mortgage does not require any downpayment, and since it is VA insured, there isn’t any PMI.  However, the VA “Up Front Mortgage Premium” is 2.5%.  If a Veteran who is on Active Duty applies for a CHFA/VA Mortgage, they are entitled to an additional .125% reduction in the already below market rate.

Teachers Mortgage Assistance Program  -   Connecticut certified full-time or part-time public school teacher or vocational-technical teacher employed by and teaching in a “Priority or Transitional School District”, or who are certified to teach and are teaching in a “State-identified Subject Matter Shortage Area”, may qualify for the Teachers Mortgage Assistance Program.  Teachers who qualify for this program are also entitled to an additional .125% reduction in the already below market rate.

Police Homeownership Program -  This CHFA Loan Program is available to local or state police officers who purchase homes in eligible municipalities.  Eligible municipalities must agree to participate in this program, then designate areas of the municipality where an increased police presence would be desirable. State or local police officers who purchase homes in those designated areas are eligible to apply for the CHFA low interest rate, and are entitled to an additional .125% reduction in the already below market rate.

Processing Time -  Generally, the process time for CHFA Mortgages, from loan application to loan closing can be as much as six weeks.  However, at McCue Mortgage we are experiencing only two to three weeks to commitment, and an additional one to two weeks to Close.  This is because we know what documentation are needed, and we collect everything at the time of the application.  So by the time our underwriters process the loan application, and send it to CHFA for their Loan Review, we receive it back within 24 to 48 hours approved.  The loan packet is then sent to the Closing Attorney for them to complete the Loan Documents, Title Search and schedule the Closing.

Federal Recapture Tax -  Under certain circumstances, CHFA mortgage loans may be subject to Federal Recapture Tax. The payment of federal recapture tax occurs at the time the property is sold, only if ALL three of the following conditions apply:

1. The house is sold or disposed of within nine (9) years of being purchased, for reasons other than death.
2. There is a capital gain on the sale of the home.
3. The household income exceeds Federal Recapture Tax limits at the time of the sale.

We have been doing CHFA Loans for over 30 years and have seen this Recapture Tax kick in less than a handful of times.  If a homeowner’s income has reached the point that it exceeds the Federal Recapture Tax Limits, they will probably be happy to pay the tax in exchange for that income.  And even then the other two conditions must also apply in order for this tax to be paid.

As you can see this is an excellent Loan Program for anyone who can qualify for it, and it is the first loan program that I look to when I am talking to a “First Time Home Buyer”.  With “30 Year Fixed Rates” that are below the rate of “Adjustable Rate Mortgages”, these loans make home ownership much easier to achieve. 

For more indebt information on CHFA Mortgage Loan Programs is available at www.chfa.org  or contact a participating Lender like McCue Mortgage (860) 573-1308  

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

I get a lot of strength and comfort from reading the word that I try to live my life by, especially when things are not going the way that I want, and things get a little rocky.  I find a lot of comfort in versus like (Matt 6:25-34), but I also get a lot of comfort and strength from many of the hymns that we sing at church.  I even find myself meditating on the words of some of these hymns during the week.  However, the one hymn that is my favorite and that I turn to on those reeeeeelly bad days.  You know those days that nothing seems to go right, and just want to throw up your hands and give up, is a hymn titled “It is Well With My Soul”.  This hymn just says it all for me, and gives me inner peace, no matter what is going on in my life, personal or business.  As much as this hymn is a source of peace for me, the story of how it came to be written has also become a resource for me to draw strength from.

“Peace Like A River”  was written by Horatio Spafford, a Chicago businessman who had a very successful law practice, had invested large sums of money in downtown Chicago real estate market, and was a prominent church leader in the Presbyterian Church.  Spafford had everything going for him, he had the type of life that most people dream about.  But in 1871 tragedy struck his life and tested his trust and faith in God.  Spafford had five children, four girls and one boy.  In early 1871 the first of two tragedies struck, Spafford lost their only son.  This tragedy was soon followed by a second.  Spafford was a very wealthy businessman as I mentioned before, who had invested much of his money into the downtown Chicago real estate market.  On October of 1871 downtown Chicago was destroyed by what has become to be known as the “Great Chicago Fire”.  Because of his enormous investment in downtown Chicago property, Spafford lost huge sums of money and was ruined financially.  This fire not only destroyed most of the building in the downtown Chicago area, it also took a lot of lives.  When the fire had finally been put out, 300 people were dead and 100,000 were left homeless.  Despite these two tragic losses in his life, Spafford and his Norwegian-born wife, Anna, dedicated themselves for two years to helping those who had lost there homes and were ruined by the fire.

The tragedy in Spafford’s life would not stop here.  After two years of dedicating himself to helping others, Spafford and his family decided to take a much needed vacation.  They decided to go to England along with their good friend Dwight Moody (founder of Moody Bible Institute) and Ira Sankey on one of their evangelistic campaigns in Europe. The Spafford’s and their four daughters booked passage on the steamship called the Ville de Havre, which was sailing from New York to England.  However, a problem came up in Spafford’s business as they were about to sail.  Not wanting his family to have to wait for him, he told his wife and daughters to go ahead and that he would to join them later. For some reason that he was unable to explain, at the last moment he changed their stateroom from amidships to near the bow of the vessel.  Anna and the girls boarded the ship and sailed for England, but when their ship reached the coast of Newfoundland, the Ville de Havre collided with an English sailing ship the Loch Earn.  The Lech Earn ripped a massive hole amidships in the hull of the Ville de Havre. So large was the hole that the Ville de Haver sank to the bottom of the frigid Atlantic Ocean within 20 minutes. Had Anna and the four girls been in their original stateroom, they all would have been killed instantly.  As it was, Anna and the four little girls were cast into the sea. She frantically tried to save her daughters, she even managed to briefly grasp the hem of one of their nightgowns, but she slipped away from her grip and was never found again.  Anna was later found floating unconscious on a piece of wreckage and was rescued.  Of the hundreds of people aboard, only forty-seven were rescued. 

It was ten days before the survivors of the shipwreck were brought to safety in Cardiff, Wales, and were able to finally contact anyone.  As soon as she landed in Cardiff, Anna sent a telegram to her anxious awaiting husband.  It contained only two works “Saved alone”.  Spafford immediately boarded the next available ship sailing for Europe.  As he was in route, the captain of the ship he was sailing on called him to the bridge.  Pointing to a chart, the captain told him that they were just passing the spot where the Ville de Havre had gone down. As Horatio walked the deck in his sorrow, his faith was all that kept him together.  But instead of being overtaken by grief and sorrow, he was overtaken by a feeling of peacefulness.  As he watched the waves rolling on the ocean he recalled the words of Isaiah 66:12, "For thus says the Lord, I will extend peace to her like a river..." and he wrote the words to what has become my favorite hymn.

It Is Well With My Soul

Horatio G. Spafford                       Phillip P. Bliss 

When peace, like a river, attendeth my way, 
When sorrows like sea billows roll; 
Whatever my lot, Thou has taught me to say, 
It is well, it is well, with my soul. 

Chorus

It is well, with my soul, 
It is well, with my soul, 
It is well, it is well, with my soul. 

Though Satan should buffet, 
though trials should come, 
Let this blest assurance control, 
That Christ has regarded my helpless estate, 
And hath shed His own blood for my soul. 

Chorus

My sin, oh, the bliss of this glorious thought! 
My sin, not in part but the whole, 
Is nailed to the cross, and I bear it no more, 
Praise the Lord, praise the Lord, O my soul! 

Chorus

And Lord, haste the day when my faith shall be sight, 
The clouds be rolled back as a scroll; 
The trump shall resound, 
and the Lord shall descend, 
"Even so", it is well with my soul. 

Chorus

I would like to close this Post by posing a few.  How many of us could deal with our grief the way that Horatio Spafford did?  How many of us when faced with what he had just been through, could turn around and say that we were at "Peace Like A River"?  How many of us in a time like this would praise God for taking away all of our sins, and praise him for nailing them to a cross?  How many of us in this time of grief and sorrow would ask him to haste his return so that we could look upon Him whom we have put all our trust and faith in?  

I hope that by sharing this with you that you to can find the peace, comfort, and strength that I have found from the words that Horatio Spafford penned.  The type of peace, comfort, and strength that will also allow you in times of your deepest troubles to say "it is well with my soul".

******************************************************************************************** Info about the author: George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Everyone needs “Attitude” especially if you are a salesperson.  If you don’t have it then you better get some.  Now don’t get me wrong I am not telling you to “Have an Attitude”, I am telling you to “Have an Attitude”.  Huh, isn’t that the same thing?  NO, its not.  People that have the first “Attitude” are not nice people to be around, because they are “Copping an Attitude”, and no one likes that.  People who “Cop an Attitude” are tough to stomach, at least they are for me.

The “Attitude” that I am talking about, is the people who “Haaaaaaaave an Attitude”, the type of “Attitude” that comes from being confident about what you are doing, and knowing that you are good at doing it.  So salespeople better have “Attitude”, because no one wants to work with a Realtor or Loan Officer that is not confident in what they are doing.  People like this type of “Attitude” because it makes them feel like they can trust you to take care of what ever comes along in their transaction.  I have never met a successful person who did not have “Attitude”.

Lets start with ActiveRain.  ActiveRain has “Attitude”.  The people that have put this site together know that they are in the midst of developing a great site.  In fact it is already a great site.  They are good at what they do and it shows. Look at how it is growing in membership daily.  People don’t join things that are failing.  They join things that are succeeding.  ActiveRain is a success, so they have “Attitude”!!!

The members of ActiveRain have “Attitude”, it you don’t think so just look at that “Dashboard”, it is loaded with “Attitude”.  If you have read their blogs you know that they are dripping with “Attitude”.  Why??? Because they are good at their business, they are knowledgeable about what they do, and it shows in their Posts.  Now this statement is not just limited to the people on the “Dashboard”, it can be said of several more that are not on it.  ActiveRain is a great site with “Attitude”, not only because the people who put it together have “Attitude”, but also because all of the members that contribute blogs to it have “Attitude”.

If you are good at what you do, and are knowledgeable about it, then you will not be able to help it but to have ”Attitude”.  Would you want a Doctor operating on you if he didn’t have “Attitude”?  Yah, sure I am going to let someone cut me open if they don’t look like they know what they are doing.  I want a Doctor that does not have to tell me that he is good, because I will be able to see it for myself, he will have “Attitude”.  If he has to tell me how good he is, then he does not have “Attitude”, and I don’t want him anywhere near me with a scalpel.

So the next time someone tells you that you “Have Attitude”, smile and say “I Know”.  Now you might say, well that isn’t very humble, but you would be wrong.  Notice what I said about the Doctor.  He did not have to say he was good, you can see it, that is “Attitude”.  “Attitude” is not having to boast about yourself, people will do the boasting for you.  They will be able to see the “Attitude”, you will not have to tell them about how much “Attitude” you have.  That is being humble in my book, having enough “Attitude” to not have to talk about it.

So since ActiveRain will not tell you that it has “Attitude”, I am here to tell you that it does, but you already know that, because you see it each and every time you sign on here.  Enjoy it, share in it, and get an “Attitude”!!!

I would like to thank TLW for a blog that got me to thinking about this “I Have An Attitude And I Have A Gun! Uh! Oh!...BAM…ROAR!” 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Most of the sermons that our Minister preaches on Sunday Morning hit home with me, in fact most of the time I think that the sermon is about me.  It isn’t, but that is what a good sermon should do, talk directly to us and make us look at ourselves.  Yesterday morning however, it was not the sermon that talked to me, but a story that he told about his daughter when she was in Kindergarten.  Most of us are familiar with a method of discipline called “Time Out”.  When a child misbehaves they are sent to for “Time Out” some where in the room or house by themselves, but this Kindergarten Teacher had a different method. 

His daughter came home and told him that one of the little boys in the class had missed behaved, and that the Teacher had sent him to the “Stop & Think Chair”.  Everyone at Church got a big laugh out of this, because no one had ever heard of the “Stop & Think Chair”.  But even though this got a smile out of me as well, I sat there thinking WOW could we as adults use a “Stop & Think Chair” in our lives every once in a while.  Sometimes are priorities get all twisted around “Are Your Goals For 2007 Prioritized Correctly” and we could sure use a “Stop & Think Chair” to get them back on track again.

God has Blessed me greatly in my personal life.  I have the comfort and strength that he gives me through His Word.  I have a wife that loves me, and two of the best boys that a father could ever ask for.  And I have a job that I love doing, and that I am eager to do each and everyday.  God has truly Blessed me in many ways.  But what good is any of this if I don’t stop and enjoy it.  When things start to get a little out of balance in my life, as they sometimes do, I need to send myself to the “Stop & Think Chair”.  We also need to consider using the “Stop & Think Chair” in our business life. 

This is the time of the year were we starting thinking of next year and the goals that we want to accomplish. This I believe is something that we must all do, because if we don’t set goals then how will we ever get to where we want to be “Key To Being A Successful Sales Person!!!”.  The problem is that sometimes we get so focused on those goals that we forget to take time to enjoy what we have already achieved.  What good is it to keep striving to meet goals, if we do not take the time to enjoy the ones we have already accomplished? We need to sometimes sit in a “Stop & Think Chair”, and come to the realization that it does not do any good to accumulate all of the wealth in the world, (Matt 6:19-20; Matt 16:26) but never get to enjoy it, because we are to busy trying to gain more.  I would dare to say, that there isn’t one person reading this Post, that does not have everything that they need in life.  Now “Stop & Think” I did not say that we have everything that we want in life, I said everything we need.  This does not mean that I do not still strive to meet other goals that I have set for myself, but it does mean that I can’t be so consumed with meeting those goals that they take over everything in my life.  The same thing goes for worrying about things that we do not have any control over. Worrying robs us of the joy of the present (Matt 6:25-34).

We need to use the “Stop & Think Chair” when it comes to dealing with other people, especially those that are our clients.  TLW wrote a Sunday blog this week on the “The Lovely Wife’s Ten Commandments of Real Estate….Roar!”. These were the “Thou Shall Not’s” for Realtors.  Loan Officers need to also consider similar “Thou Shall Not’s” along with some “Thou Shall’s” like, “Thou Shall return all your phone calls promptly”, Thou Shall take responsibility for your actions, and not blame your Underwriter”, or “Thou Shall take care of your Borrowers, the same way you would want to be taken care of yourself” (Luke 6:31) to just name a few.

So maybe we should have a “Stop & Think Chair” in our personal and business lives.  Not to punish us as it was used by the Kindergarten Teacher, but to sit and reflect upon what we have, and to not take it for granted that it will always be there (Luke 12:13-21).  Yes play hard, work hard, but enjoy what you have to its fullest.  How sad would it be if we woke up one morning and came to the sad realization that we had it all, but now it is too late to enjoy it, because it has past us by?  I have decided that I am going to take time during my week to sit in my “Stop & Think Chair”, I hope that those reading this will consider doing the same.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Let’s face it, buying a home can cause some anxiety, but it doesn’t have to. The more you understand about the financial aspects of buying a home and the process you’ll go through, the smoother the transaction will go. But that understanding depends upon working with knowledgeable professionals who will take the time to fully explain everything.  It is my intent with this Post to provide prospective Buyers with the necessary information to begin this process.

There are three very basic, but in my opinion the most important steps that any Homebuyer, but especially First Time Homebuyers, should take when they begin to look for a house.

Opt Out - In my Opinion, the first step in obtaining a Mortgage is for the Buyer to “Opt Out” from having their Credit information sold to Lenders who are purchasing lists from the three National Credit Bureaus. It is very important that a Buyer do this as soon as they consider purchasing a home.  In the next step we will see that in order to get Pre-Approved for a Mortgage, a Loan Officer will have to pull the Buyer’s Credit.  When the Loan Officer does this, the information that is submitted will be collected by the three National Credit Bureaus, Equifax, Experian, and TransUnion. Once these Bureaus have the Buyer’s information they then make it available to any Lender who wishes to purchase it.  These lists are referred to as “Trigger Lists”.  This means that within 12 to 24 hours of the Buyers Credit being pulled, these bureaus are taking the information that they gave to a Loan Officer, and selling it without their permission to other Lenders.  In order to prevent this, a Buyer needs to “Opt Out” by calling (888) 567-8688 or go online at  www.optoutprescreen.comThe Buyer can choose to “Opt Out” for a five year or a lifetime option period.  A Buyer needs to do this right away so that when a Loan Officer runs their Credit, these Bureaus will of already have been notified that they have chosen to “Opt Out”.  For more information on this read on of my other Post “Are TRIGGER LISTS Putting Us and Our Clients At Risk???”

Get Pre-Approved for a Mortgage – The second step in purchasing a house, should be to contact a Lender.  A Realtor will most likely not take a Buyer’s to see houses unless they know that the Buyer is a qualified Buyer.  This is important because both the Buyer and the Realtor may just be wasting each others time if a Buyer does not qualify for a Mortgage, or qualifies for the Mortgage, but not for one in the price range that they have been looking at.  So for me this is the next step.

Once a Buyer has contacted a Lender, a Mortgage Professional will proceed to go through the “Pre-Approval Process” by identifying the Buyer’s ability to purchase a home, and establish the  Purchase Price Limit that the Buyer qualifies for.  In order to do this a Loan Officer is going to have to check the Buyer’s Credit, take a full Loan Application, and submit the Credit and Loan Application through their Automated Underwriting System.  It is important that they take all three of these steps, because it is the ONLY way that a Buyer can be reasonably assured that they will qualify for a Loan.  Once the Credit Report is pulled it will provide the Loan Officer with all of the Buyer’s revolving debt, which will have to be taken into consideration in determining what they can afford. The Credit Report will also show the Buyer’s payment history, and Credit Scores.  The Loan Application will include the Buyer’s Income, Residency, Employment, and Bank Information.  Once all this information has been submitted, the Automated Underwriting System will determine if the Buyer is qualified to purchase a house within the desired price range.  However, this approval is not a Mortgage Commitment, a Commitment can only be given once there is a Sales Contract on a property, and documentation have been collected to verify the information that the Buyer gave to the Loan Officer.  A Property Appraisal will also be done at this time to determine if the property is worth the price that the Buyer has agreed to pay.

Once this has been done, the Loan Officer can provide the Buyer with a Pre-Approval Letter for them to provide to a Realtor.  If the Buyer is not working with a Realtor, the Loan Officer will be able to provide them with a list of “Trusted Professional Realtors” that the Loan Officer works with for them to choose from. If a Loan Officer does not do all of this, then the Buyer needs to contact one that will.  Without following this procedure, all that the Buyer will have is the Loan Officer’s opinion and nothing more. 

Finding a Realtor – If you started this process with a Loan Officer this is the third step in the “Home Buying Process”, but this could have easily been the second step. For this step I would recommended that a prospective Buyer read the following two Post on how to select a Realtor  “Adventures in 1^st Time Home Buying: “Top 10 Traits of a Great Agent, Part 1”  and   1^st Time Home Buying: “Top 10 Traits of a Great Agent, Part 2”  I also recommend reading  “Adventures in 1^st Time Home Buying: Exchanging Your Vows”  Between these three Posts a Buyer will be well informed and armed on how to go about selecting a Realtor and what transpires during that process

Once a Buyer has done these three steps they are ready to purchase a house, sign a Sales Contact and obtain a Mortgage, but it all starts here first.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

I have mentioned on a few of my previous blogs that I make it a point to stop by two to three Open Houses every Sunday.  As I stated in "Open Houses Not Just For Realtors...A Great Marketing Too For Loan Officers Also"  I live about 30 minutes from Church, so I stop by Open House on my way home.

This Saturday I followed my normal routine, and I picked three Open Houses that I wanted to stop at.  I put my Flyers together, and got everything ready for Sunday.  I had already met two of the three Realtors, but I had a reason for stopping by their Open Houses.  One of the Realtors I have stopped by his office on a numerous occasions.  I have got a referral from him, but no business. The second Realtor has given me a deal, and I refinanced her house.  The reason why I wanted to stop by her Open House was because she just joined a new office.  This is an office that I have had a hard time getting into, so I was hoping she would be my way in. The third Realtor I had never met before, or so I thought.

So on Sunday I left Church around 12:40 and started on my way to the first Open House. I decided to first stop at the Open House of the Realtor that I had not met before. I arrived right at 1:00 and I introduced myself.  She looked at me and smiled, and told me that she knew who I was.  Hummm, I started thinking is this good or bad.  So I looked I looked at her with a puzzled look on my face, and asked her how did she know me.  She proceeded to tell me that she had been at a Broker Open this summer that did with another Realtor. I remembered the Broker Open because it was packed with Realtors, which probably explains why I didn’t remember her. She then tells me that she was happy that I stopped by, because she was looking for a new Loan Officer to work with.  This is always music to my ears, so she now had my undivided attention, and my curiosity.

No one else had arrived, so we sat down and started to talk.  I asked her why she was looking for a new Loan Officer to work with.  She replied that the present Loan Officer that she had been partnering with just “blew” a deal for her.  Ok, no one likes their deals to fall apart, but one would hope that one “blown” deal does not end a relationship, so I figured there had to be more to it then just this.  So I asked her what happened?  It seems that they were a week away from Closing, and the Closing Attorney had called the Buyer with the amount that he was going to have to bring.  The amount was much more than the Buyer had originally expected, and did not have enough money.  The Buyer got very upset, and called the Loan Officer to find out why the Closing Costs were so much higher than she had told him.  This was late in the day and the Loan Officer was on her way home.  The Buyer was able to reach the Loan Officer on her cell phone.  She proceeded to tell him that she could not deal with this at the moment, and that his problem was not a priority for her right now.  WHAT NOT A PRIORTY, are you kidding?  She proceeds to tell him (are you ready for this) that her horse had some stitches in his leg, and that was her priority at the moment, and he would have to wait until the next day. 

Needless to say the Buyer was on the phone with this Realtor screaming.  After she got him to calm down, she called the Loan Officer who confirmed the conversation, and that she had in fact said that to the Buyer.  Now I am not one to encourage lying, but at the very least tell the Borrower that you have a medical emergency to take care of, and that you will get back to him as soon as possible.  Not that the stitches in my horses leg is a bigger priority then you are, especially to a Buyer that is freaking out.  Talk about needing some people skills.  So needless to say this Realtor is not going to give this Loan Officer any more opportunities to practice her people skills on, which is good for me.

I was there with this Realtor for the full two hours of the Open House, and no one showed up the whole time.  This was not good for the Open House, but it gave me and her time to talk about several things.  She has a Buyer that she is going to send to me this week that needs to be Pre-Approve for a loan.  She also wants to do a Seller Seminar with me after the holidays.  I have done Buyer Seminars, but never a Seller Seminar, so this will be a new experience. She is also thinking of refinancing her house, so when she calls me with the contact information on her Buyer, I will also take her information for her refinance.

Open Houses, I love them.  I never made it to the other two, but guess what?  I will just have to take my Flyers and stop by their office with them.  It is a perfect reason to talk to them, and they always appreciate the extra effort.  Like I said, I LOVE OPEN HOUSES!!!

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

I firmly believe that the difference between a successful sales person and one that isn’t, is “Motivation”.  A successful sales person does not need to report to an office and have someone tell them what they have to do.  A successful sales person does not have to have someone checking on them to see if they are doing what they are suppose to be doing. A successful sales person does not wait around for the phone to ring, they make it ring.

What does a successful sales person have that others are missing?  It is simple, it is “Motivation”.  A successful sales person is a self motivated person.  They can motivate themselves to do the things that have to be done each and every day to be successful.  They are motivated to do what needs to be done even when they don’t feel like doing it.  They have a plan and they are going to follow it, and not let anything, or anybody detract them from it. 

In order to help me “Motivate” myself, I have come up with a list of KEY things that I try to accomplish everyday in order to be a successful Loan Officer.  This list contains NINE KEY activities, and within it there are FOUR that are a MUST.  So what are the top NINE KEY things that I try to accomplish each day?

Leave House – Leaving the house is a MUST, no matter what, a sales person has to get out the door each and everyday.  It is soooo easy to make excuses, but in order to be successful we need to overcome the excuses.

Leave The Office – Leaving the office goes hand and hand with leaving the house, it is a MUST. Yes there is a certain amount of work that needs to take place in the office, but once it is done, we need to get out, and go on to the other things on our list.

Return All Phone Calls – Phone calls MUST be returned right away.  Even if you can’t talk to the person at that time, it only takes a couple of minutes to call them back, and set up a time when both of you will be available.

Meet New People – A great way of doing this is by participating in different community events.  There are always new people at these events, and by participating in them we provide a service, and meet prospective new clients at the same time.

Prospect – This is in many ways the life blood of any business.  New clients have to be developed, because old ones are not around for ever.  This is a MUST.  The most affective way to prospect for me is Cold Calling, and I don’t let the day go by without doing it. There are many others ways to prospect, but what ever it is, it needs to be done everyday.

Contact Past Clients – Staying in touch with people that have already done business with you is a great way to get new business, especially if they were happy with you the first time. Staying in touch with them, not only increases the likely hood of getting their business, but also referrals.

Send Thank You Cards Or Notes – I subscribe to "SendOut Cards" sending out cards this way is very easy.  I send them out to people that I Pre-Qualify, people and Realtors I meet at Open Houses, to Buyers and Realtors after a Loan Application, after the Commitment Letter, and after Closings.  There are many other reasons for sending out a Card, it is just a matter of identifying them during the day.

Pass out Five to Ten Business Cards – Passing out business cards is easy to do, and they can be given to everyone you come in contact with during the day.  It is just a matter of disciplining yourself to do it.

Take One New Application – This is the reason why I do all the other things on the list.  Even if I do not succeed in getting an application everyday, it is still what I strive for.  It is my ultimate business goal as a Loan Officer, and if I do everything that I know I need to do, I might achieve it in the future.

OK, there they are.  Most people would list ten, but I have listed nine, so feel free to list your tenth one.  Do I accomplish all these things everyday?  No I don’t, but I “Motivate” myself to try to accomplish them, and that is what is important. However, rarely do I not accomplish the MUST ones, and I “Motivate” myself to accomplish as many of the others possible. But whether I fit them in or not they are a goal each day. I believe that if a sales person attempts to accomplish each of these things everyday, they can’t help but to succeed. 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com